IN THE INCOME TAX APPELLATE TRIBUNAL,
MUMBAI BENCH "D", MUMBAI
BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER AND
SHRI SANJAY GARG, JUDICIAL MEMBER
ITA No.6311/M/12
Assessment Year:2012-13
M/s. Shri Radhakrishna The Directorate of Income Tax
Sanwarmal Pansari Charitable (Exemption),
Trust, Room No.616,
102, Gauresh Apartment, 6th Floor,
Vs.
Old Police Lane, Piramal Chambers,
Agarkar Chowk, Parel,
Andheri East, Mumbai ­ 400 012
Mumbai ­ 400 069
PAN: AABTR6237P
(Appellant) (Respondent)
Assessee by : Shri Lalchand Choudhary, A.R.
Revenue by : Shri Santosh Kumar, D.R.
Date of Hearing : 16.12.13
Date of Pronouncement : 16.12.13
ORDER
Per Sanjay Garg, Judicial Member:
This appeal has been preferred by the assessee against the order of the
DIT (Exemptions) dated 26.09.2012 refusing the Registration u/s.12AA of the
Income Tax Act, 1961 read with rule 17A of Income Tax Rules to the
assessee-trust.
2. The ld. counsel for the assessee has submitted that the registration has
been refused u/s.12AA of the Act by the DIT(Exemptions) on the ground that
the trust has not been able to bring any evidence on record to establish that any
activity of the trust/association has been taken for the charitable purposes as a
result genuineness of the activities cannot be verified.
2 ITA No.6311/M/12
M/s. Shri Radhakrishna Sanwarmal Pansari Charitable Trust
3. The ld. AR of the assessee has contended that objectives of the
appellant-trust are charitable in nature and further that for a newly
created/established trust like the appellant one should not expect that the
activities will begin immediately. By and large the activities shall commence
after the grant of registration under section 12AA and exemption under section
80G(5)(vi). He has further submitted that the appellant trust is a newly formed
trust and the carrying out of charitable activities at commencement stage are
not relevant for grant of registration. The ld. DR has opposed the submission of
the ld. AR for the assessee and has relied on the orders of the
DIT(Exemptions).
4. We have considered the rival submissions of the ld. Representatives of
the parties. The issue that the trust has not been able to bring any evidence on
record to establish that any activity of the trust/association has been taken for
the charitable purposes came into consideration of the Delhi Bench of the
Tribunal, in the case of "Dharma Sansthapak Sangh (Niyas) vs. CIT" (2008)
118 TTJ (Del) 823 : (2008) 13 DTR (Del) (Trib) 589; wherein it has been held
that carrying on of charitable activity, at the stage of commencement is not
relevant to decide whether such trust/institution is entitled for registration.
Again in the case of `Sardari Lal Oberai Memorial Charitable Trust vs. ITO'
(2005) 3 SOT 229 (Del), the Delhi Bench of the Tribunal has held that section
12AA takes care of a situation where activities have been carried out by a trust
whereas it does not lay down anything negative in cases where no activities
have been carried out, like in the instant case. In such a case, the sole criterion
of grant/non-grant of registration would be for the CIT to see the objects of the
trust. If the objects of the trust are charitable, the fact that no activity has been
carried out by the trust, does not entitle the CIT to hold that the trust is not
entitled to registration. Even the Hon'ble Delhi High Court in "DIT vs
Foundation of Ophthalmic & Optometry Research Education Centre" [2012]
3 ITA No.6311/M/12
M/s. Shri Radhakrishna Sanwarmal Pansari Charitable Trust
25 taxmann.com 376 (Delhi), has held that the provisions of section 12AA
reveal that the statute does not prohibit or enjoin the Commissioner from
registering Trust solely based on its objects, without any activity, in the case of
a newly registered Trust. The statute does not prescribe a waiting period, for a
trust to qualify itself for registration.
5. So respectfully following the decision of the co-ordinate benches of the
Tribunal as well as of Hon'ble Delhi High Court and also in view of our above
observations, we hold that there was no justification for the DIT(exemptions)
for refusing the registration u/s.12AA of the Act to the assessee, which is
accordingly allowed to the assessee and the orders of the DIT(Exemptions) are
reversed. The DIT(Exemptions) hereby directed to grant the registration
u/s.12AA of the Act to the assessee.
6. In the result appeal of the assessee is hereby allowed.
Order pronounced in the open court on 16.12.2013.
Sd/- Sd/-
(D. Karunakara Rao) (Sanjay Garg)
ACCOUNTANT MEMBER JUDICIAL MEMBER
Mumbai, Dated: 16.12.13
* Kishore
Copy to: The Appellant
The Respondent
The CIT, Concerned, Mumbai
The CIT (A) Concerned, Mumbai
The DR "C" Bench
//True Copy// [
By Order
Dy/Asstt. Registrar, ITAT, Mumbai.